Introduction: The Travel Landscape This Half-Term
As families prepare for half-term holidays, a staggering 3.8 million individuals are expected to travel abroad. However, many families may not fully consider the total value of the belongings they bring along. Recent estimates suggest that the average value of items children take with them for a week-long trip abroad is around £3,911.79. Alarmingly, most standard travel insurance policies only cover belongings up to a maximum of £2,000. This discrepancy leaves parents with a potential shortfall of £1,911.79 should items need to be replaced due to loss, theft, or damage.
The Financial Exposure
Assuming that 1.9 million of those travelling this half-term are children, that equates to over £3.6 billion worth of items soaring through the skies potentially uninsured. With half-term fast approaching, Gigasure urges families to scrutinise their travel insurance policies to ensure comprehensive coverage for everything they are taking along.
Expert Insight from Gigasure
Gary Murphy, Head of Travel at Gigasure, emphasises the importance of being vigilant when selecting travel insurance: “Travel insurance often becomes a checkbox item; people tend to overlook the details until they need to make a claim. Should the worst occur, and your belongings become lost or stolen while travelling, the gap between the replacement cost and the amount the insurer is willing to pay can be significant.”
Rising Value of Travel Items
Murphy continues, “As we progress through life, the worth of the items we take on our travels generally rises, particularly when travelling with children.” The replacement costs for essential items such as buggies, car seats, toys, and gadgets like games consoles and iPads can add up quickly, leading to substantial financial exposure.”
Depreciation and Coverage Gaps
Moreover, it is crucial to remember that most standard policies account for the age of items when determining replacement value. If a pram purchased a year and a half ago is lost, for instance, a depreciation deduction will be applied, meaning that the payout could be considerably lower than expected.
Common Misconceptions
Murphy warns, “Some travellers mistakenly believe they have coverage for their items through other policies, such as home insurance or bank account packages. However, these policies may not extend coverage to personal belongings when away from home.”
Recommendations for Comprehensive Coverage
To mitigate risks, Gigasure recommends including additional baggage and personal item cover in travel insurance policies. This added protection can significantly reduce the costs associated with replacing lost items. Families should verify their policy wording to ensure that the full value of their belongings is adequately covered before departure. Flexible travel policies can be tailored to meet individual family needs.
Top Tips for Keeping Personal Items Safe While on Holiday
Gigasure shares its top tips for ensuring your personal belongings remain safe during your travels:
- Use Safety Deposit Boxes: Store valuable items like phones, laptops, and gaming consoles in hotel safety deposit boxes. Never leave valuables unattended, as they may not be covered by insurance.
- Keep Valuables Close: When flying, keep valuable items with you rather than placing them in the airplane hold, where they may lack coverage. Travel with only essential tech and consider gadget extensions to your policy.
- Consider Lower-Cost Equipment: Travel with a less expensive buggy or pram. Most items are usually only covered up to £500, and the popular models often exceed this, risking inadequate claims due to depreciation.
- Prioritise People Over Possessions: Ensure that your travel insurance covers pre-existing medical conditions and provides adequate care for your destination. Teach children what to do if they become separated from you.
- Fit for Purpose Insurance: Choose a level of coverage that fits your needs, taking into account the value of your belongings. Think about expanding your home insurance policy to include coverage for items taken outside of your residence.
Travel with Peace of Mind
By taking these precautions, families can enjoy peace of mind during their travels, ensuring that their belongings are protected and reducing the potential financial impact of any unforeseen incidents.
